May 29 (Bloomberg) -- The iShares Emerging Markets
exchange-traded fund rose for a second day as the Micex Index
rallied after Morgan Stanley recommended buying Russian stocks,
outweighing a drop in Chinese shares.

The ETF increased 0.3 percent to 43.14 in New York, pushing
its two-day gain to 0.9 percent. The MSCI Emerging Markets Index
added less than 0.1 percent to 1,038.64. Natural-gas producer
OAO Gazprom led a 1.5 percent advance in the Micex. Infosys Ltd.
slumped to a 10-month low in Mumbai amid executive resignations.

Morgan Stanley reiterated a buy recommendation on Russian
equities, saying in an e-mailed research report that Petro
Poroshenko’s election as president of Ukraine will help ease
tensions between the two countries, which will probably benefit
stocks. The Shanghai Composite Index fell 0.5 percent as Chinese
Premier Li Keqiang said there is instability in the global
recovery.

“Russia is gaining because there were post-weekend worries
about the situation in eastern Ukraine, but it doesn’t look as
though this will escalate to a surge in tension” Simon Quijano-Evans, a London-based analyst at Commerzbank AG, said by e-mail.
“In China, concerns on the general growth story have been re-emerging recently. There have been numerous comments from
officials in the past week or so that indicate more needs to be
done at all official levels to buoy the macro story.”

Indian Stocks

The developing-nation gauge has gained 3.6 percent this
year and trades at 10.8 times projected 12-month earnings, data
compiled by Bloomberg show. The MSCI World Index has risen 3.1
percent in 2014, and is valued at a multiple of 15.

Infosys sank 6.6 percent. Co-president B.G. Srinivas has
resigned, the company, which is searching for a new chief
executive officer, said yesterday. The drop pushed the S&P BSE
Sensex Index to a 1.3 percent decline, the steepest since Feb.
3.

The Shanghai Composite sank from a two-week high, with more
than four shares sliding for each that rose. The Hang Seng China
Enterprises Index declined 0.1 percent in Hong Kong. Premier Li
said there were still uncertainties and unstable factors in the
global recovery, China Central Television reported. The nation
is scheduled to release reports on factory activity and services
next week.

Philippine Growth

Dubai’s DFM General Index jumped 5 percent, rebounding from
yesterday’s 3.3 percent slide. The gauge has more than doubled
in the past 12 months on bets that an upgrade to emerging-markets status in June by index provider MSCI Inc. will lure
investors managing about $8 trillion in assets.

The Philippine Stock Exchange Index fell 1.6 percent. Gross
domestic product increased 5.7 percent in the three months
through March from a year earlier, the Philippine Statistics
Authority said in Manila today.

The premium investors demand to own emerging-market debt
over U.S. Treasuries fell 0.07 percentage point to 272 basis
points, according to JPMorgan Chase & Co. indexes.